LVMH-Backed Private Equity Firm Eyes Birkenstock Valuation of Up to $10 Billion
L Catterton, the private equity firm backed by luxury French fashion house LVMH, is gearing up for an initial public offering (IPO) of iconic footwear maker Birkenstock, with a potential launch as early as September. The IPO is being worked on in collaboration with Goldman Sachs Group Inc. and JPMorgan Chase & Co., as previously reported by Bloomberg News.
Sources familiar with the matter revealed that the IPO could value Birkenstock at more than $8 billion, with some speculating it could reach up to $10 billion. The German sandal maker has experienced a sales boost lately, partly attributed to the success of the blockbuster Barbie movie, where Margot Robbie dons a pair of pink Birkenstocks in a scene.
The company saw its revenue rise by 29 percent to approximately €1.2 billion ($1.3 billion) last year, resulting in adjusted earnings of €394 million. Birkenstock, founded nearly 250 years ago, has successfully established itself as a high-fashion brand through collaborations with luxury names such as Dior, Manolo Blahnik, and Valentino. It has also inspired luxury variants by labels like Celine and Givenchy. The brand’s presence in the US dates back to 1966, and its popularity has been on the rise, especially in recent decades, embraced by celebrities like Kate Moss and Heidi Klum.
Birkenstock’s growth and expansion have been supported by investments in its production facilities in Germany. Among these endeavors is the construction of a new €120 million ($131 million) factory in Pasewalk, located north of Berlin. The move signifies the company’s commitment to enhancing its manufacturing capabilities and further establishing its presence in the fashion market.
The potential IPO comes more than two years after L Catterton and the family investment company of billionaire Bernard Arnault acquired a majority stake in Birkenstock, valuing the company at about €4 billion. If the IPO proceeds, it would mark a significant step in Birkenstock’s journey as a company that has evolved from a traditional sandal brand to a highly sought-after fashion statement.
As the IPO market in the US shows signs of revival after a prolonged slump, with Cava Group Inc.’s successful debut recently, Birkenstock’s offering is expected to attract considerable attention from investors and industry enthusiasts alike. However, discussions are still ongoing, and no final decisions on the size or timing of the IPO have been confirmed, according to insiders familiar with the matter. Representatives for Birkenstock and L Catterton have declined to comment on the ongoing developments.